5-1-2024 (SINGAPORE) Regional e-commerce giant Lazada has confirmed the layoffs of an undisclosed number of its staff in Singapore as part of proactive adjustments to reshape its workforce. Responding to inquiries from The Straits Times, a Lazada spokesman stated, “We are making proactive adjustments to transform our workforce, to better position ourselves for a more agile, streamlined way of working to meet future business needs.”
The company declined to specify the number of affected workers in Singapore and Southeast Asia or provide details about severance packages. The move is part of a broader transformation aimed at future-proofing Lazada’s business and operational structure.
This recent round of layoffs follows a similar initiative in October 2023. Lazada, founded in 2012, operates in six countries, including Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. Alibaba Group Holding acquired Lazada in 2016, incorporating it into Alibaba International Digital Commerce (AIDC) after the split of Alibaba into six main business units in March 2023.
AIDC, which includes e-commerce platforms Daraz and Trendyol and online store AliExpress, is reportedly considering an initial public offering in the United States in 2024. The unit recorded a 53% increase in revenue for the quarter ending September 2023, positioning itself as a significant competitor to fellow Singapore-based e-commerce platform Shopee.
In December 2023, Alibaba infused US$634 million (S$842 million) into Lazada, bringing its total investment in the firm to over US$1.8 billion in 2023. The funding injections have been a response to intensifying competition in the e-commerce industry.
Digital Industry Singapore (DISG) executive director Chan Ih-Ming expressed DISG’s commitment to working closely with Lazada and relevant government agencies to support affected employees in exploring alternative employment opportunities. Despite the current economic conditions, DISG remains optimistic about the long-term growth potential of Singapore’s tech sector.
DISG, a collaborative effort of the Economic Development Board, Enterprise Singapore, and Infocomm Media Development Authority, serves as a single interface for the industry, transforming the way the government engages with the technology sector.
